New investor values CitizenM hotel group at $2.6B

Sovereign wealth fund will acquire a 25% stake in the Dutch hotel group

TRD NATIONAL /
Mar.March 31, 2019 11:00 AM

Singapore’s sovereign wealth fund has acquire a 25 percent equity stake in CitizenM (Credit: iStock)

Singapore’s sovereign wealth fund has acquired a 25 percent equity stake in CitizenM, a chain of 15 boutique hotels based in the Netherlands.

CitizenM said the undisclosed investment gives the hotel company an enterprise value of €2 billion, according to the Financial Times.

Founded in 2008, CitizenM targets business travelers seeking short stays and was the first hotel company to list properties on Airbnb, the popular vacation rental platform. Last year, the group opened its second boutique hotel in New York. The hotel group has three locations planned for Miami. Other U.S. cities where CitizenM has opened hotels include Boston and Seattle.

Rattan Chadha, founder and executive chairman of CitizenM, said 15 potential investors, mostly from North America, showed interest in acquiring a major equity stake in the company. GIC won out due to its experience in hospitality, the Times reported.

Last year, the fund joined a consortium that paid €4.4 billion for a majority equity stake in the real estate arm of European hotel group, Accor. Close to a fifth of GIC’s $100-billion investment portfolio consists of real estate and private equity.

The deal comes as another Singaporean sovereign wealth fund, Temasek Holdings, is in talks to buy Eastdil Secured from Wells Fargo. [FT] – Mike Seemuth


Related Articles

arrow_forward_ios
Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

Rendering of the Staybridge Suites at 38-59 11th Street

Long Island City hotel project moves forward with construction loan

Heritage Equity Partners’ Toby Moskovits, Benefit Street Partners real estate managing director Micah Goodman, and the Williamsburg Hotel at 96 Wythe Avenue (Credit: Google Maps)

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default

461 West 34th Street with Marx Development Group's David Marx (Credit: Google Maps)

David Marx lands $202M refi for Hudson Yards hotel

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

arrow_forward_ios